Breaking News - Olivier Bijaoui departs WFS

Olivier Bijaoui  -  photo: hs
Olivier Bijaoui - photo: hs

CargoForwarder Global has received a copy of a press release which is meant to be made public today in which it is stated that the long-serving President & CEO of Worldwide Flight Services, Olivier Bijaoui, has departed the company.

A surprise move
The release only shortly refers to Olivier’s departure and concentrates more on who has temporarily taken over his duties.
Why this sudden departure?

It certainly comes as a surprise considering Mr Bijaoui’s background and the work he has put into making WFS what it is today.
He was instrumental in the buildup of the company into one of the world’s leading cargo handling entities and provider of ground handling services.

 

Could it be that Olivier Bijaoui and the new owners, Platinum Equity do not see eye to eye on how the company should move forward after the Platinum takeover? Read more>

All’s Quiet on the Pharma Front - or is it?

Pharma products are increasingly migrating from air to sea  -  courtesy Hapag-Lloyd
Pharma products are increasingly migrating from air to sea - courtesy Hapag-Lloyd

Not hearing much these days as to how the airlines, airports and ground handlers are tackling the problems around the pharmaceutical supply chain.
There was much discussion within IATA and other premiums on the urgent need to catch up and beat their sea-freight competitors.

What is going on?
Fact is that there has been a more than 6 percent decline in pharma volumes transported by air between the turn of the century and 2013.
This is a worrying figure considering that the aviation handling world had considered themselves as the “transporters of choice” by the pharma producers. Read more>

Breaking News – Reich Quits Cargolux

Reich is leaving Cargolux  -  courtesy Guy Jallay
Reich is leaving Cargolux - courtesy Guy Jallay

Even for insiders this move comes unexpectedly: CEO Dirk Reich of Cargolux Airlines has resigned, and will leave the cargo carrier at the end of July. In a telephone conversation with CargoForwarder Global he said his stepping down from CV’s top deck is purely based on personal reasons. Richard Forson, Senior VP and CFO at Cargolux will replace Mr Reich. Read more>

DHL Gives Four Carriers their CARE Award

From l > r: Angelos Orfanos, President, Life Sciences & Healthcare Sector, DHL Customer Solutions & Innovation and David Bang, Global Head of DHL Temperature Management Solutions/CEO LifeConEx at DHL Global Forwarding pose along with the first DHL CARE Award recipients - courtesy DHL

This way, the express company recognizes four major carriers for excellence in transporting temperature-sensitive goods and medicines. These are: American Airlines, Cathay Pacific, Swiss International Air Lines and United Cargo. Read more>

ACG Sticks to Charter Traffic

Vladimir Makarov   -  photo: hs
Vladimir Makarov - photo: hs

The Slovakian freight carrier Air Cargo Global (ACG) which was formed out of the old ACG which was based at Hahn Airport has shelved plans to start network operations with their two Boeing 747Fs. Instead, they plan to deepen the operational partnership with UK-based MAGMA Aviation.

 

Two freighter aircraft, two utilizers. That's the business model developed and obviously successfully practiced by Air Cargo Global and partnering MAGMA to their mutual benefit. This, CargoForwarder Global was told by Vladimir Makarov, ACG's Director Sales Far East and Manager Special Prodict Development at the recent Shanghai-held trade show Air Cargo China. "For instance, we operate our freighters on Thursdays for carrying our own loads, while our partner MAGMA takes the aircraft over on Fridays to accomplish their projects.”

 

Splitting costs
This mutual utilization practice substantially reduces costs, which are split between the two parties according to their share of utilization.
While at the beginning of the flights, ACG had their two freighters based in Frankfurt, the aircraft are meanwhile transferred to Brussels Zaventem International in Belgium.
"This we did as reaction to requests of our customers, that have a lot of Africa traffic they hire us constantly for," states Vladimir. Read more>

Comment: Quo Vadis Great Britain?

Good Bye UK!? As CargoForwarder Global we deeply regret the outcome of the British referendum last Thursday, which saw Britain vote by 52% to 48% to leave Europe. The UK stepping out of the EU will harm both sides, but predominantly Great Britain itself that could fall apart and suffer severe economic declines. But there are slight hopes for a U-turn.

 

When German Finance Minister Wolfgang Schaeuble was asked days before the British Referendum how he would react if ‘Leave’ would succeed, he simply said: “I would cry.” Read more>

Is Cathay Pacific Moving Steadily Away from Freighters?

Cathay Pacific Cargo is scaling down its freighter fleet. Pictured here is one of their six Boeing 747-400Fs  - courtesy CX
Cathay Pacific Cargo is scaling down its freighter fleet. Pictured here is one of their six Boeing 747-400Fs - courtesy CX

Tough times at the moment for all cargo carriers who are operating on the Far  East routes.
Yields have been dropping considerably and tonnages are hard fought for as the influx of long-haul belly capacity continues to grow. Read more>

LATAM Cargo Fighting Against Headwind

LATAM Cargo’s Álvaro Carril (center) was welcomed in Frankfurt by ACD leaders Winfried Hartmann (right) and Mathias Jakobi (standing left)  -  courtesy ACD
LATAM Cargo’s Álvaro Carril (center) was welcomed in Frankfurt by ACD leaders Winfried Hartmann (right) and Mathias Jakobi (standing left) - courtesy ACD

The lasting economic crises in Brazil, South America’s former powerhouse that resulted in a 4 percent drop in GDP with the consequent impact on cargo volumes lately, has LATAM Cargo forced cutting down its capacity. The carrier’s Head of Sales Álvaro Carril, while speaking at the German Air Cargo Club (ACD) last week, illustrated how grave the situation is and which steps his freight airline is taking to best weather the storm.

 

Alvaro is no man shying away from open words, demonstrated once again at the ACD meeting in Frankfurt, Germany. While declining fuel prices are a positive factor for any carrier, helping to save money, their current drop has been counterproductive in the case of Latin American freight traffic, he told the surprised audience.

Read more>

Hyperloop Eager to Transport Cargo across Eurasia at the Speed of Sound

Hyperloop’s Shervin Pishevar pushes a trans-Eurasian track forward  -  photos: courtesy company
Hyperloop’s Shervin Pishevar pushes a trans-Eurasian track forward - photos: courtesy company

What sounds like a bizarre vision could become reality within the next five to ten years: an ultra-fast Hyperloop vehicle transporting freight containers through airless tubes elevated on pillars all the way between China and Europe. The project pushed forward by Californian firm Hyperloop One was now presented by Co-Founder and Executive Chairman Sherwin Pishevar to Russian President Vladimir Putin on the sidelines of the St. Petersburg-held International Economic Forum (SPIEF).

 

Pishevar’s plan: setting up a high-speed transportation system bridging continents that would revolutionize and simplify cargo flows over long distances. Read more>

Cathay, Dragonair Axe Shark Fin Transport

Protests prompt Cathay to ban shark fin transport.
Protests prompt Cathay to ban shark fin transport.

Cathay Pacific and sister airline Dragonair have decided to impose a ban on the carriage of shark fin with immediate effect, the South China Morning Post reported, adding that the airline did not impose an outright ban but instead set up a panel of experts to decide on a case-by-case basis whether each shipment was from a sustainable source.

 

Early reports said the ban extended to all shark products on cargo and passenger flights, but the airline told the BBC it currently applied to shark fin only. Read more>

JD.com, Wal-Mart Ink Strategic China Pact

Wal-Mart operates 430 stores in China
Wal-Mart operates 430 stores in China

China’s B2C online retailer JD.com and America's largest retailer Wal-Mart, have agreed to a strategic alliance across China through a combination of e-commerce and retail.

 

Under the agreement, Wal-Mart will sell its Chinese online e-commerce marketplace, Yihaodian, to JD.com, the country’s No. 2 e-commerce player, in an all-share deal. In exchange, JD.com will issue Wal-Mart stock amounting to about 5% of its total shares, worth roughly US$1.5 billion based on JD.com’s recent share price. Read more>

SHORT SHOTS

IN BRIEF, THE LATEST AIR FREIGHT INDUSTRY NEWS. Read more>

New Russian Cargo Carrier  /  Russian Post Gets Own Aircraft

Newcomer Sky Gates Airlines will start commercial flights this year, hubbing at Moskow Ramenskoye Airport.
Newcomer Sky Gates Airlines will start commercial flights this year, hubbing at Moskow Ramenskoye Airport.

Are AirBridgeCargo Airlines going to get some undesired competition in the Russian air cargo market during the coming twelve months?
It may look that way when one reads the news coming out of Russia these past days.
If all were to be true, then two new freight carriers may be coming on the scene, one of them almost exclusively for the Russian Post. Read more>

Cargolux Enjoys Tailwind in Zhengzhou

In early 2014, Luxembourg’s media, local unionists and even some of Cargolux’s staff had been outbidding each other in their aversion to Chinese investor HNCA taking over 35 percent in Cargolux Airlines (CV). Meanwhile, most of the former skeptics and naysayers are recognizing that the Cargolux-Henan pact was a wise move, resulting in plenty of business activities to mutual benefit. What both parties achieved meanwhile was presented last week at the Shanghai-held trade show Air Cargo China, followed by a press trip to Zhengzhou where participants got a wealth of first-hand information on the CV-HNCA joint venture. Read more>

China's JD.com Eyes Drone Deliveries to Rural Areas

JD-com drone delivery tests
JD-com drone delivery tests

China’s largest B2C online retailer, JD.com has launched the first operational pilot programme for drone deliveries in China using at least two types of UAVs to deliver packages between designated distribution centres in rural areas outside of Suqian city in northeast China’s Jiangsu province, China Daily reported.

 

The two drones, which are based at the Caoji township delivery depot, are capable of autonomously loading and unloading up to 200 packages in a single flight route each day. The drones can each carry 10 to 15 kg of weight and fly 15 to 20 km at a speed of up to 54 km per hour. Read more>

Parcel Locker Market to Reach US$918m by 2024

Singapore Post is a leading user of parcel locker systems  -  company courtesy.
Singapore Post is a leading user of parcel locker systems - company courtesy.

The global automated parcel locker market, which accounted for US$335m in 2015, is expected to reach US$918m by 2024, according to the latest market intelligence report by Transparency Market Research. The report has forecast a compound annual growth rate (CAGR) of 12% throughout the nine-year period, due mainly to the booming e-commerce business around the world.

 

Automated parcel delivery terminals have been developed to simplify modern-day logistics operations, which are deployed in populous areas such as walkways, shopping malls, grocery outlets and railway stations. Read more>

Amazon Ups India Investment by US$3bn; Faces FAA fine

Amazon warehouse in Phoenix, Arizona
Amazon warehouse in Phoenix, Arizona

Amazon will invest another US$3 billion in India, boosting its committed investment in the country to over US$5bn and placing additional pressure on local rivals Flipkart and Snapdeal to keep raising fresh funds and keep up with competition. Read more>

Qatar Cargo Plans Major Push in Next Nine Months

QR Cargo’s fleet increase goes hand in hand with growing tonnage
QR Cargo’s fleet increase goes hand in hand with growing tonnage

The cargo arm of the Qatar national carrier, Qatar Airways has made no secret of the fact that they plan to expand their cargo operations worldwide within the coming years.
Much has been put into motion in this direction during the past twelve to eighteen months with new cargo aircraft additions to the fleet and joint ventures with other carriers.

 

Transpacific, Australia and South America are new targets
At last week’s Air Cargo China 2016 show held in Shanghai, Ulrich Ogiermann, QR’s Chief Officer Cargo, informed his audience that the world’s third largest international cargo carrier is striving to be a leading market player in three new areas.

Read more>

AF-KL Cargo and Delta Cargo Deepen Ties Further

Gert Jan Roelands, VP Area Europe at AF-KL Cargo  -  courtesy KL
Gert Jan Roelands, VP Area Europe at AF-KL Cargo - courtesy KL

Effective June 1, the entire DL Cargo sales activities and customer service matters in Germany and France were transited to Air France-KLM Cargo. “By moving to an integrated joint venture sales organization we are able to profit from the knowledge and experience of the AF-KL and DL Cargo staff,” states Gert Jan Roelands, VP Area Europe for AF-KL Cargo.

The move follows the transition of Delta Cargo responsibilities to Air France-KLM Cargo in Belgium last month, in line with their one roof strategy within their transatlantic joint venture commercial and operational framework. The airlines’ customers will benefit from easier single drop-off and collection points as well as an extensive route network, reads a joint release.

 

Integration pays off
Delta Cargo and Air France Cargo began the one roof initiative at Paris-Charles de Gaulle in February 2015 to offer better value for customers and enhance the competitive position of the Delta/Air France-KLM and Alitalia partnership. Read more>

Q2 Air Freight Figures get off to a Good Start in April

The gap is slowly closing  -  IATA
The gap is slowly closing - IATA

The International Air Transport Association (IATA) reported in its April air freight figures that there had been a 3.2 percent y-o-y rise in worldwide cargo traffic.
IATA’s figures are as always, based on freight tonne kilometers (FTK’s) flown.
Although international cargo traffic accounts for over 85 percent of the total tonnage flown, the first four months of this year continue to show a decline, with traffic down by almost 1 percent (0.7%) and from that, international cargo traffic has fallen by 1.2% January to April. Read more>

Aramex Inks e-Commerce Pact with Australia Post

Aramex has strong presence in ME, SEA and India.
Aramex has strong presence in ME, SEA and India.

Australia Post and Dubai-based logistics and express operator Aramex have formed a strategic alliance to provide Australian businesses and online shoppers with greater access to emerging e-commerce markets.

Under the terms of the agreement, Australia Post and Aramex will enter into an Asian-based joint venture, targeting the global e-commerce market with a particular focus on Asia.
The joint venture will build on the service capabilities of Australia Post’s logistics and freight delivery subsidiary, StarTrack, and Aramex’s global express delivery network. The partnership will also see StarTrack acquire Australian-based courier service Mail Call from Aramex. Read more>